Marines to pay $160M for Blount property

By TIMOTHY J. GIBBONSThe Times-Union,

The Marine Corps must pay $160 million for land on Blount Island that it seized through its eminent domain powers, a jury ruled Monday, requiring the government to pay almost $55 million more than it had planned.

The Marines seized the 1,100 acres on and around Blount Island in August 2004 and paid property owner Gate Maritime Properties $101 million for the land. Later, it bumped its payment to almost $106 million.

"The jury was fair and Gate is satisfied with its verdict," said Stephen Busey of Smith Hulsey & Busey, Gate's attorney in the trial. "Even the government admitted at trial that Gate's Blount Island property -- with five miles of deep water riverfront close to the ocean -- is a unique asset."

See previous stories:

Multimillion-dollar difference of opinion (11/1/05)

Government, Gate debate value of Blount land (6/8/05)

Defense cuts aim at more than JFK (1/23/05)

Gate land taken by eminent domain (8/14/04)

Marines preparing to take Blount Island (7/10/04)

JPA, Marine Corps seal $ 20 million Blount Island land deal (6/24/03)

JPA, Marines reach Blount Island deal (6/21/03)

Stipulations stall Blount Island land deal (11/15/02)

Marines make a pitch for Blount Island site (5/24/00)

For 18 years, the Corps had leased land -- most recently 262 acres for about $10 million a year -- on the island, where it stocks ships that supply Marine forces worldwide. The military moved to buy the entire parcel when it decided to upgrade the site to a logistics base and said it needed to own the land before making improvements.

Gate Maritime, a division of Jacksonville-based Gate Petroleum Co., had argued that the land was worth between $160 million and $200 million depending on the use of the land. During the two-week trial in the United States District Court for the Middle District of Florida, the jury heard from a raft of appraisers representing both parties.

The U.S. Department of Justice, which handled the case for the government, was still considering its options, which could include asking for a reduction in the amount of the judgement, said spokeswoman Cynthia Magnuson. The department didn't have a timeframe for making a decision about its next step, Magnuson said.

The Marine Corps, which has $115.7 million budgeted for the purchase, will have to return to Congress for authorization for the purchase. Busey said he expects that to "take months," but said the Marines will have interest charges added to the payment.